A STUDY ON EMPLOYEE RETENTION AT

HMT MACHINE TOOLS LTD

KALAMASSERY
A SUMMER PROJECT REPORT
SUBMITTED BY
Miss Vijaya R
(REG 08PIT35)

IN PARTIAL FULFILMENT OF THE REQUIREMENTS

FOR
THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
IT ORGANISATION AND ADMINISTRATION

UNDER THE GUIDANCE OF

Miss Sasikala Devi, M B A
AVINASHILINGAM SCHOOL OF MANAGEMENT
TECHNOLOGY
AVINASHILINGAM UNIVERSITY FOR WOMEN
COIMBATORE-641043
JUNE 2009

ACKWNOWLEDGEMENT
I acknowledge the chancellor Mr. T. K. Shanmugananthan, B.A, B.L and the
Vice Chancellor Dr. Saroja Prabhakaran, M.A, Dip. Ed, Ph.D and the
Registrar Dr. Gowri Ramakrishnan, M.Sc, M.Phil, Ph.D of Avinashilingam
University for Women, Coimbatore for having given an opportunity to
undertake this project work which forms a part of my curriculum.
I express my hearty gratitude to the Dean, Department of Management
Studies Dr. Shantha B Kurup, M.Com, M.Phil, Dip.Ed, M.B.A, Ph.D for her
support and encouragement.
This work would not have materialized but for the timely guidance given
by Miss Sasikala Devi, M.B.A, Lecturer, Department of Management
Studies who assisted and extended support through out the project.
I express my heartfelt thanks to all the faculty members of the Department
of Management Studies, whose immense support helped a lot to complete
the project.
I express my sincere gratitude to

CONTENTS

CHAPTER NO

CONTENTS

PAGE NO

INTRODUCTION

SYNOPSIS

INDUSTRY PROFILE

COMPANY PROFILE

OBJECTIVES

25

REVIEW OF LITERATURE

25

RESEARCH METHODOLOGY

29

LIMITATIONS

31

ANALYSIS & INTERPERETATIONS

32

SUMMARY

46

FINDINGS

46

SUGGESTIONS

47

ANNEXURE

48

INTRODUCTION
SYNOPSIS

Employee Retention
Employee retention is the initiatives taken by the management to keep
employees from leaving such as rewarding employees for performing their
jobs effectively, ensuring good relations between employees and managers
and maintaining a safe healthy environment. When you have hired good
people trained them, built them into high performing teams you dont want
to loose them.
There are many different ingredients that go into reducing employee
turnover. There will be seven strategies focused on: money, building
relationships between employers and co-workers, a fearless culture, job
satisfaction, opportunities for personal growth, organizational direction,
And recognition of work/life balance needs. Retention is successful when
emotional bonds are built. Therefore, building relationships between
employers and co-workers is important when it comes to employee
retention.

INDUSTRY PROFILE
INDIAN MACHINE TOOLS INDUSTRY
BACKGROUND AND HISTORICAL TRENDS
The machine tools industry in Indian dates back to the world back to
the Second World War. Due to non availability of imported machine tools, a
few British owned general engineering firms took up their manufacturing in
India. This was followed up by start of industrialization in the series of Five
year plans. The process of planning in the economy resulted in a second
phase of machine tools with public sector investment in Machine Tools
(HMT Ltd .1953. These two initial phase of development of Indian Machine
Tool industry saw the production of general purpose machine tools most of
which were produced under technical assistance from Foreign Collaborators
(Loudon, Ward, Herbert, Jones and Shipman, etc)
The 1960 marked the third phase of Machine Tool Industry. During
this phase, the range of product witnessed rapid, growth and various types of
machine tools including SPMs were manufactured(Multi Spindle Automats,
Gear cutting machine, SPMs, presses ,Broaching Machines, etc.).The Fourth
phase begins in the mid 1980s which saw the entry of Japanese Machine
Tools makers in the Indian Market though licensing agreements. (Mori
Seiki, Hitachi Seiki, Nachi fuji-koshi, Mit subshi, etc.
The Fifth and current phase began in the early nineties after the
liberalization of the Indian Economy. With the market share of bigger
companies expanding and the public sector giants shrinking and those of the
smaller company rising, in house design capability, entrepreneurial spirit,
5

greater technology freedliness, operational flexibility and lean management,

combined to give a greater competitive edge to the smaller companies setup
by technocrats resulting in a significant shift in machine tools production to
these medium sized companies.
International Trends
While Japan increased its lead over Germany Taiwan
edged part of United States to be among the top five machine tools
manufacturing countries. Italy and China remain in the Second and Third
slot.
Current Status in India
The Indian Machine Tools industry manufactures almost
the complete range of metal cutting and metal forming machine tools.
Customized in nature, the products from the Indian market comprise
conventional machine tool as well as Computer Numerically Controlled
(CNC) machines. Others include special purpose machines, robotics,
handling systems, and TPM-friendly machines.
Efforts with the Industry are now undergoing the
features of CNC machines, and provide further value additions at lower
costs, to meet specific requirement of users.
In India there are about 450 manufacturing complete
machines or their components. There are 150 in the organized sector. Almost
73% of the total machine tool production in India contributed by 10 major
companies in this industry. The industry has an installed capacity of over Rs
10 million and employees a workforce directly and indirectly totaling 65000
skilled and unskilled persons.
The hub of manufacturing activities concentrated in Mumbai and
Pune in Maharashtra, Chennai, Gujarat, Coimbatore, etc. All global leaders
6

namely, Makino, DGM, Yamazaki, Haus, Trumpf Daewoo, Schules are

present in India either through marketing agents, technical centers, service
centers or assembly centers.
These are critical issues to this industry.
The competitiveness and quality of machine tools manufacturing depends on
the competitiveness and quality of its sub contractors.
Attracting and retaining talented manpower is an issue since the industry can
grow only with knowledge accumulation.
High fragmentation is leading to low economies of scale.
Indian educational curriculum in the ITIs or engineering colleges is not
geared to impart the all round technical knowledge required by the engineers
and operator in this sector.
It is well known and often repeated fact that the machine tools
industry forms the pillar for the competitiveness of the entire manufacturing
sector since machine tools which in turn produce the manufacturing goods.
Hence being an integral sector, growth of the machine tools industry has an
immense bearing on the entire manufacturing industry which is crucial for
countrys strategic requirement like Railway, Defense, Space and atomic
space.

COMPANY PROFILE
HISTORY OF THE COMPANY
HMT MACHINE TOOLS LIMITED
By the end of the Second World War, the Government of India was
confronted by a big problem of disposing the colossal war waste. Ultimately
a committee was constituted to enquire into the possibilities. The committee
report of 1948 proposed the establishment of a Government owned machine
tool industry. This was expected to fulfill two aspects. The first was being
utilization of the Rs 4000 Million worth of metallic waste. The second was
the incorporation of state owned infrastructure manufacturing facility. The
result was the birth of the HINDUSTAN MACHINE TOOLS LIMITED,
which diversified in due course of time to the present stature of the multi
core, multi location, multi unit, multi product, industrial gaint HMT Ltd.
The HMT Ltd was started as a single factory to produce Tool room
Lathes at Bangalore in collaboration with M/s Oerlikon of Switzerland in
1953, with a capacity to manufacture around 400 machines per year. Since
then different Collaborations, continued in house R & D and tremendous
marketing efforts brought HMT, to present in status.
The growth of HMT was characterized by backward and forward
integration of technology and product diversification. Thus, the company
that started with manufacturing and selling lathes expanded its machine tools
product range to evolve as the ultimate solution in metal cutting. The
product diversification efforts took the company to the business of watches
in 1962, Tractors in 1972, presses in 1972 Lamps and Lamp making

machinery in 1980, CNC system in 1986, Ball screw in 1986 and

Reconditioning in 1990.
The multi product activities made HMT Ltd changes its identity as
Hindustan machine tools Ltd. Today, HMT Ltd. has 22 product divisions,
spread through the length and breadth of India. A subsidiary namely HMT
(international) Ltd, undertakes the exports to several other Indian companies.
HMT Ltd was restructured in 1992 to facilitate
better administration of the multi product business activities. Accordingly,
the following business groups were established.
Machine tools business group, to concentrate on metal cutting
machines.
Industrial machinery Business Group, to deal with printing machines, Die
casting and Plastic injection molding Machines, Food processing Machines
and metal forming machines.
Agricultural Business group to concentrate on Tractors.
Engineering components Business Group, to deal with Casting and Ball
Screws.
Customer product Business Group, to deal with watches and Lamps. In
addition to these Business Group, the company owns three subsidiaries as
follows.
HMT (International) Ltd .which undertakes the overseas projects and
exports.
Praga tools Ltd. which manufactures machine tools.

 HMT Bearing Ltd. which manufactures precision Bearing in collaboration

with m/s Koyo Japan.

As per the revival of this public sector Industry a turnaround plan has
introduced in the early days of this millennium and recognized as HMT Ltd
holding company including Tractors division and presently comprises of
the following subsidiaries.
1. HMT MACHINE TOOLS LIMITED
2. HMT WATCHES LIMITED.
3. HMT CHINAR WATCHES LIMITED.
4. HMT INTERNATIONAL LIMITED.
5. PRAGA TOOLS LIMITED.

1. HMT MACHINE TOOLS LIMITED.

The HMT Machine tools limited is engaged in the manufacture and
marketing of General Purpose Machine tools, Precision machinery systems,
printing machines, Metal forming processes, die casting and Plastic Injection
molding machines, Ferrous and non ferrous casting.
THE PRODUCT RANGE OF HMT MACHINE TOOLS UNITS
BANGALORE
Heavy Duty Lathe.
Single and Multi Spindle Automobile.

10

 Radial Drilling Machines.

Multi Spindle Drills.
Cylindrical and Surface Grinders.
Laser Cutting Habers.
Gear Cutting Machines.
CNC Turn Mill Centers.CNC Wire cut EDM.
Fine Boring Machines/SPMs.

PINJORE

FMS AND FMC.

Horizontal Machinery Centers.
Vertical Machinery Centers.
Milling Machines.
Broaching Machines.

KALAMASSERY

CNC Turning centre.

Turn Mill Centre.
Flexible Turning Cell.
Copying Lathes.
Centre Lathes.
Offset Printing Machines.

11

 Paper Cutting Machines.

HYDERABAD

Special Purpose Machines.

Horizontal Machining Centre.
FMS.
CNC Horizontal Boring Centre.
Bed Type and Floor Type Boring Machines.
Grinding Machines.
SPM Grinders.
CNC grinders.

MAJOR MACHINES AND INSPECTION FACILITY AVAILABLE IN

DIFFERENT MACHINE TOOLS UNITS
1. CNC Ram Type Plano Millers.
2. Horizontal Machining Centers.
3. Vertical Machining Centers.
4. Horizontal Jig Boring Machines.
5. CNC Turning Centers.
6. Turn Mill Centers.
7. Slide Way Centers.
12

8. Cylindrical Grinders.
9. Internal Grinders.
10.Precision Gear Shapers.
11.Precision Gear Hobbes.
12.Gear Grinders.
13.Induction Hardening Machines.
14.3d-co-ordinate Measuring Machines
.
2. HMT WATCHES LIMITED:
HMT Watches Ltd manufactures and markets watches including Hand
Wound/ Automatic and Quarts.
3.HMT CHINAR WATCHES:
HMT CHINAR WATCHES LTD is also one of the subsidiaries
engaged in the manufacture of Chinar model watches located in Srinagar,
Kashmir State.
4. HMT BEARING LTD:
HMT Bearing Ltd is one the subsidiaries engaged in the manufacture
of different types of industrial bearing, situated in Hyderabad.

5. HMT INTERNATIONAL LTD:

HMT International is engaged in the export of HMTs ranges of
product Worldwide HMT (I) also marketed other Engineering Products in
the World Market and backed by a good sales and service network also
undertake Turnkey Projects and technical services for developing countries.
6.PRAGA TOOLS LTD:

13

Praga tools limited is also a subsidiary of HMT Ltd engaged in the

manufacturing of Machine Tools located in Hyderabad.

PRODUCT PROFILE
THE KALAMASSERY COMPLEX OF HMT, KALAMASSERY.
The Kalamassery Unit, the Forth Machine Tools Ltd was established in
1963 and started production in 1964. The Unit originally manufactured only
two types of Lathes namely, H&LB, but later added special purpose Lathes
like Copying and Turret. Lathes. Model LT-20 was the first product to be
indigenously developed by the unit (1968) and the development of this
product was a landmark in the history of the unit. The production of this
machine was later licensed to M/s QETCOS Kerala, MATOOLS,
Philippines, Ceylon steel corporation Srilanka. The original Centre Lathes H
& Lb were then replaced by a new family of unified series of lathes which
was designed and developed by the unit, incorporating the concept of
typification, standardization and unification.
PRODUCT

DEVELOPMENT

AT

MACHINE

TOOL

LIMITED

KALAMASSERY.
The following products are developed by the machine tools unit of
Kalamassery indigenously.
YEAR

PRODUCT

1969-70

LT-20

1976-77

NH/NL
14

1976-77

FC-25

1980-81

TL-20

1981-82

NHCNC

1981-82

SBCNC 35

1982-83

SBCNC 35

1986-87

STC 25

1990-91

STC 15

1991-92

ECONO CNC

1992-93

STC 20

1993-94

STC 20

1994-95

NL 180

1996-97

TS 20 (Tcom Spindle)

1997-98

AUTOCOMP

1997-98

STALLION-200

1999-2000

AUTOMAN

2000-01

STALLION-100

2003

M CELL

2004

SMC WITH GANTORY LODER

2004

STALLION 100s

2007

MEGATURN.

DIVERSIFICATION OF KALAMASSERY UNIT AND BIRTH OF

PRINTING MACHINE DIVISION
During the period of 1972-73, kalamassery unit diversified its product
range to include Printing Machinery division (PMK) was with the two types
of latter presses namely. RTE and RTAFunder collaboration with m/s
15

Nebiolo of Italy. Auto platen an indigenous development comes up

subsequently. During the ensuring years Printing Machinery Division come
up with offset presses namely OMIR in collaboration with m/s Nebiolo.
Later indigenous offset presses namely .SOM 136 was introduced in the
market. The first two color machine from HMT was OMIR in collaboration
with M/s Koenig and Bauer of Germany. The latest development of PMK
was paper cutting, Guillotine PG 92 D3 in collaboration with m/s Divano
Binder of Italy
THE CURRENT PRODUCT RANGE
PRODUCT

MODEL

OFFSET PRINTING MACHINES

SOM 436
SOM 425
SOM 236
SOM 231
SOM 225
SOM 136
SOM 131
SOM 125G
PG-92 D3

PAPER CUTTING MACHINES

The Kalamassery unit of HMT is famous for
development activities. Thus product has always fetched awards and prizes
at different Trade fairs and Competitions. To name a few are prizes begged
in different IMTEX fairs by FC-25, SBC and SBCNC Machines. The CNC
16

Lathe Model STC -25 has won VASVIK Industrial Research Award 1987
instituted by the Vivdhalaxi Audyogile Samsodhan Vikar Kendra (VASVIK)
Mumbai for o/s advancement of Science and Technology.
The Machine tool product of this unit has been certified by RWTUVReinsih West Falischer Techniser Uber Wachiengs Verein an international
certification agency of high repute as confirmining to Total Quality
Management System.

Both the divisions have been awarded ISO 9001 certification by

IRQS
The manufacturing shops at MTK are supplied by various
infrastructural facilities like, High Technology CNC Centers, Testing
facilities, Foundry ,Heat Treatment, Computer system CAD system etc.
Around 800 well experienced form the human resources of the unit keeping
in line with the current corporate trends.
TRAINING CENTRE
This Unit views HRD as one of the concern to increase productivity and
enhance Social Stranding. The company has a well established training
system by personnel of technical and management skills.
The HRD undertaken by them includes the following:1. Management Orientation Programmes
2. Supervisory Development programs

17

3. Customer Training Programmes to equip the customer for the optimum

utilization of HMT Machines.
4. Periodic awareness Training programmes for employees relating to safety,
quality Advanced Technology, Information Technology etc.
5. Multi-skill Training to Machine Operators.
6. Induction and in plant Training to Fresh recruits and Transferees.
7. Apprentice Training Programmes under the apprentice Act.
8. Project guidance in Management and Technology to students.

THE MARKETING NETWORK OF HMT MTL Ltd.

The Machine Tools Marketing Divisions with its head quarters at
Bangalore and having a wide network of Regional and Divisional

offices

spread through out caters to the marketing needs of this Unit at the primary
level, to co-ordinate the marketing activities at the unit level and to offer
technical support to Machine tools. Marketing, a strong sales and services
team is constituted at unit level .HMTsmajor Customers includes defense,
Railways, Automobile and other Engineering Industries in Various sectors.
MAIN INLAND COMPETITORS FOR THE UNITS PRODUCTS
1. Mysore Kirlosker Ltd.
2. ACE Designers.
3. NC Machines Private Ltd.
4. Lakshmi Machine Work.

MAIN FOREIGN COMPETITORS FOR THE UNITS PRODUCTS

1. Okuma, Japan.
2. Nori saiki. Co. Ltd Japan.
18

3. Tukisama, Japan.
4. Muzak, Japan.
5. Ikegai, Japan.
6. GDM, Germany.
7. Churchill, England.
8. Ernault Toyota, Japan.
9. Victor, Taiwan.
10.Tuma, Korea.
11.EMAS, Germany.
WELFARE MEASURES IN HMT, KALAMASSERY
1. Company Quarters are provided to employees.
2. Subsidized Transport facility is provided for employees residing outside
HMT Township.
3. Company sponsors a central welfare association has subsidiary clubs, that is
Arts and Dramatic Club, Sports club, Social club, Educational society.
ISO

9000:INTERNATIONAL

STANDARDS

FOR

QUALITY

MANAGEMENT
Good quality system consists of sound technical and administration
procedures for assuring quality. QA offers more scope for reducing costs
prerequisites and characteristics of good quality assurance and quality
management. The challenge to a developing nation is to motivate processors
and manufactures to adopt and implement these standards and to establish a
credible nation quality registration scheme, which will be recognized by
trading partners.

19

In a increasing no of markets and industries third party quality

assessments and registration is becoming a pre requisite for doing
business.ISO 9000 registration is considered the minimum acceptable level
for supplier and those who cannot demonstrate this minimum level may not
only have difficulty in selling a certain markets they may be barred from
those markets. Not only must a defendant be able to demonstrate that the
product is manufactured consistently with in a system that conforms at least
two internationally acceptable standards.
IN ADDITION, ISO 9000 SERIES STANDARD ALSO: Motivates Exporters..
Set a base line
Establishes reasonable standards for Government Procurement.
Focus Training and Professional Development.
Sets general market procedure for regulating health and safety.
Reduces time consuming audits by consumers and regulators.
Raises level of motivation, co-operation, workmanship and quality
awareness.
Improves efficiency reduces scrap and rework
The following topics are dealt within the ISO 9000 series of standards.
1. ISO 9000 Quality management and quality assurance standard section and
use.
2. ISO 9001 Model of quality assurance in design /development, production
installation and servicing.
3. ISO 9002 Model for quality assurance in production and installation.
4. ISO 9003 Model for quality assurance in final inspection.
20

5. ISO 9004 Guidelines on development of quality management system to

minimize costs and maximize benefits.

Kalamassery unit
The kalamassery Unit was commissioned on October 2nd 1964 with an
initial investment of Rs 7.5 crores in Ernakulum district near the Cochin Port
.The total plot of the unit was 1150 acres. It is the second unit and fourth
division of HMT Company. The kalamassery unit started with machine tool
division since 1965. Then Printing machinery division with additional
investment of Rs 3.3 crores .In 1994 the company earned ISO 9001
certificate.
Welfare facilities
1. HMT School
2. SBT Branch
3. Bharath Gas supply unit (only for employees)
The kalamassery Unit manufactured only2 Types of lathes namely H & LB
but added special purpose lathes like copying and current lathes. Model LT:
20 was first product indigenously developed by the unit in 1968.
Corporate Objectives and goals
1. To encourage the modernization of Indian industry through the supply of
engineering goods and services of world class excellence.

21

2. To technological leadership through continuous efforts to update product

technology and manufacturing methods.
3. To globalize our operation by developing a mix of international markets and
business.
4. To ensure a satisfactory return on capital employed to meet the growth needs
and aspiration of our share holders.
5. To present an active and pleasant working environment.

Company Mission
Quality, Reliability & commitment is the main mission of the company
.HMT machines are designed to meet the functional requirements so as to
give maximum customer satisfaction.
1. To establish as one of the world premier companies in the engineering field
having strong international competitiveness.
2. To achieve market leadership in India through ensuring customer
satisfaction.
3. To achieve sustained growth in the earning of the group on behalf of share
holders.
4. Wealth maximization.
Vision
22

 To be a leading global engineering conglomerate focused on customers

delight in our fields of endeavors.

ORGANIZATION STRUCTURE

23

COMPANY STRUCTURE

24

HMT LTD

HMT WATCHES
LTD

HMT
INTERNATIONAL
LTD.BANGLORE

HMT BERINGS,
HYDERABAD

HMT MTL
FACTORIES

KALAMASSE
RY

HMT CHINNAR
WATCHES,
KASHMIR

HYDERABA
D

BANGLORE

PRAGA TOOLS LTD,

HYDERABAD

AJMIR

PINJORE

25

OBJECTIVES
1) To know the ways to retain employees in big bazaar Ltd.
2) To study various factors that helps in employee retention.

REVIEW OF LITERATURE (EMPLOYEE RETENTION).

1) Employers have a need to keep employees from leaving and going to
work for other companies. This is true because of the great costs associated
with hiring and retraining new employees. The best way to retain employees
is by providing them with job satisfaction and opportunities for advancement
in their careers (Eskildesen 2000, Hammer 2000).
2) Employees that are satisfied and happy in with their jobs are more
dedicated in doing a good job and taking care of customers that sustain the
operation. Job satisfaction is something that working people seek and a key
element of employee retention (Marini 2000; Denton 2000).
3) Research has shown that there may be many
environmental features
that can be created and maintained to give employees job satisfaction. Pay
and benefits, communication, motivation ,justice and leisure time all seem
to play a part as to whether employees are satisfied with their jobs,
according to studies which helps to retain employees. (Brewer 2000;
Employee 2000; Money 2000; Wagner 2000).
4) The employees are extremely crucial to the organisation since their value
to the organization is essentially intangible and not easily replicated
Meaghan et al. (2002). Therefore, managers must recognize that employees
as major contributors to the efficient achievement of the organizations
success (Abbasi et al. (2000)).
5) Employee engagement, the organizations capacity to engage, retain, and
optimize the value of its employees hinges on how well jobs are designed,
how employees' time is used, and the commitment and support that is

26

shown to employees by the management would motivate employees to stay

in organizations (Johnson et al (2000)).
6) Knowledge accessibility, the extent of the organisations collaborativeness
and its capacity for making knowledge and ideas widely available to
employees,would make employees to stay in the organisation. Sharing of
information should be made at all levels of management.This accessibility of
information would lead to strong performance from the employees and
creating strong corporate culture Meaghan et al. (2002).
7) Workforce optimization, the organisations success in optimizing the
performance of the employees by establishing essential processes for getting
work done, providing good working conditions, establishing accountability
and making good hiring choices would retain employees in their
organisation. (Badawy, 1988; Basta and Johnson, 1989; Garden, 1989;
Parden, 1981; Sherman, 1986).
8) With increased competitiveness on globalizations, managers in many
organizations are experiencing greater pressure from top management to
improve recruitment, selection, training , and retention of good employees
and in the long run would encourage employees to stay in organizations
( Kanungo,1982).
9)Involvement in terms of internalizing values about the goodness or the
importance of work made employees not to quit their jobs and these
involvements are related to task characteristics. Workers who have a
greater variety of tasks tend stay in the job (Couger, 1988; Couger and
Kawasaki, 1980; Garden, 1989; Goldstein and Rockart,1984).
10) Job satisfaction, job involvement and organisational commitment are
considered as some employee retention factors (Brooke and Price, 1989).
11) Organisational commitment is an affective response to the whole
organisation and the degree of attachment or loyalty employees feel towards
the organisation. Job involvement represents the extent to which employees
are absorbed in or preoccupied with their jobs and the extent to which an
individual identifies with his/her job (Brooke et al., 1988).

27

12) Empowerment of employees could help to enhance the continuity of

employees in organisations (Malone, 1997).
13) Superiors empowering subordinates by delegating responsibilities to
them leads to subordinates who are more satisfied with their leaders and
consider them to be fair and in turn to perform up to the superiors
expectations (Keller and Dansereau, 1995).
14) Retaining talent is difficult but not impossible. The employees and
supervisors are required enough to sensitize the reasons as why do
employees quit the organizations and what makes them motivated to stick to
them. There is end number of reasons for driving people out of their jobs.
But if the employees and supervisors smartly sensitize to the issues related
to employee attrition and devise retention strategies judiciously the talented
employees can be retained.(Dr S R Chary, Prof Harish Kumar)
15) Retention experts agree that businesses can keep the talented people they
have worked hard to secure, and don't have to spend a lot of money to do so.
"It is not about having to pay exorbitant salaries," says Daniel Dixon of
Consolidated-Products. "It's about creating a vested interest for employees
and that can be done with simple creativity and a little effort."

28

REFERENCES
1) Personnel Management, 2 (3):333-342.
2) Badawy MK (1988). "What weve learned about managing human
resources in R&D in the last fifty years", Res. Technol.Manage. 31(5):
pp.19-35.
3) Brooke PP, Russell DW, Price JL (1988). "Discuss validation of measures
of job satisfaction, job involvement and organizational commitment", J.
Appl. Psychol. 73 (2) : 139-145
4) Couger DJ (1988). "Motivators vs. demotivators in the IS environment",
J. Syst. Manage. 39 (6):36-41.
5) Garden AM (1989). "Correlates of turnover propensity of software
professionals in small high tech companies", R&D Manage. 19 (4):325-34.
6) Johnson J, Griffeth RW, Griffin M (2000). "Factors discrimination
functional and dysfunctional sales force turnover", J. Bus. Ind. Mark.15 (6):
399-415.
7) Keller T, Dansereau F (1995). "Leadership and empowerment: a social
exchange perspective". Hum. Rel. 48 (2):127-146.
8) Meaghan Stovel, Nick Bontis (2002), Voluntary turnover: knowledge
management-friend or foe? J. intellect. Cap. 3 (3): 303-322
9) "The relationship between factors in the work

29

environment and turnover propensities among engineering and technical

support personnel", IEEE Transactions on Engineering Management, 33: 7278.
10) Malone TW (1997). "Is empowerment just a fad? Control, decision
making, and IT", Sloan Manage. Rev. 38 (2): 23-9.
11) Image Theory: Decision Making in Personal and
Organizational Contexts, pp. 3-10
12) Development of the job diagnostic survey J. Appl. Psychol. 60: 15970.
13) Kerala Personnel- pp 24-26
14) By Boyens, John ,Publication: Franchising World
15) By Rivenbark, Leigh,Publication: HRMagazine

RESEARCH METHODOLOGY
Research is an organized, systematic, data based investigation into a specific
critical, objectives, scientific inquiry or problem undertaken with the
purpose of finding answers of solution of it Research design is the blue print
for the collection measurement and analysis of data.
RESEARCH DESIGN.
A research design is the measurement, collection and analysis of data. The
research comes under descriptive research. Research purpose may be
grouped into four categories:
1) Exploratory
2) Descriptive
30

3) Diagnostic
4) Experimentation
DATA COLLECTION
Data collection method is the integral part of research design. There are
several data collection methods, each with its own advantages and
disadvantages. Data can be collected in a variety of ways in different
settings from different sources. The data are classified into two categories,
primary and secondary data.
PRIMARY DATA
Primary data refer to information obtained first hand by the researcher. In
this study the researcher used interview method by using structured
questionnaires, telephone interviews for collecting the primary data. Here
Primary data was collected through questionnaires.
SECONDARY DATA
Secondary data can be obtained from the publications, industry analysis
offered by the websites, internet and so on. In this survey the secondary data
collected from the journals, books & from HMT Machine Tools Ltd,
Kalamassery.
TARGET GROUP
Employees of HMT Machine Tools Ltd are the target group for this study.
SAMPLE SIZE
The sample size taken was 100 employees of HMT Machine Tools Ltd,
Kalamassery.
SAMPLING EXTENT
The survey was conducted at HMT Machine Tools Ltd, Kalamassery.
SAMPLING TECHNIQUE

31

In this study the researcher adopted convenience sampling technique.

Convenience sampling refers to the collection of information from
members of the population who are conveniently available to provide. In
this the researcher selected 100 as sample size from the population.

QUESTIONNAIRE DESIGN AND TESTING

The questionnaire used was mainly quantitative with few qualitative
questions. The questionnaire before being used in survey was tested with a
pilot study and corrections were made with the help of guide from the
organization and from the faculty of Department of Management Studies
that made it more effective.

RESEARCH TOOLS
1. Survey- Detailed questionnaire were given to employees to get
the primary data for the project.
2. Questionnaire- Primary data were collected by means of
questionnaire.
3. Statistical tool- After the data has been collected, an analysis
has been done with the data using simple percentage analysis.
LIMITATIONS OFF THE STUDY
1. Getting suggestions from the employees were very difficult as
they had only very little free time to spare.
2. Due of the shift system some of the employees were not
available for the interview.
3. Some of the employees might not have understood the real
purpose behind the survey and hence their answers were vague
and not up to the point.
4. The conclusion was made upon the information obtained from
100 employees only. As in any sample it may not be an exact
representation of the population and there may be variation in
the findings to that extend.
32

In spite of all the limitations maximum care and effort were taken to make
the study scientific and meaningful.

ANALYSIS AND INTERPETATION

The data analysis and interpretations were done from the following
collected from the employees.

data

AGE GROUP OF EMPLOYEES

NO
RESPONDENTS
BELOW 30 0
30-40
0
40-50
43
50-60
57
AGE

OF PERCENTAGE
ANALYSIS
0
0
43
57

33

From the above data 57% of employees are aged between 50 and 60, 43% of
employees are aged between 40 and 50 and others are zero.

EXPERIENCE IN THE ORGANISATION

YEARS
BELOW
5
5 to 10
10 to 15
15 to 20
ABOVE
20

NO
RESPONDENTS

OF PERCENTAGE
ANALYSIS

0
0
6
83

0
0
6
83

11

11

34

From the above data 11% of employees have experience more than20 years,
83% of employees have experience between 15 and 20 years, 6% of
employees have experience between 10 and 15 and others are zero.

RATE OF MONETARY BENEFITS IN THE ORGANISATION

RATING
VERY
GOOD
GOOD
BAD
VERY BAD

NO
RESPONDENTS
6
20
51
23

OF PERCENTAGE
ANALYSIS
6
20
51
23

35

51% of employees said that the monetary benefits in the organization is bad,
23% of employees rated monetary benefits in the organization as very bad,
20% rated as good and only 6% rated the monetary benefits in the
organization as very good.

RATE OF ADDITIONAL BENEFITS

ADDITIONAL BENEFITS
TRANSPORTATION
ALLOWANCE
IMPROVEMENT
IN
TOWNSHIP
TRAINING IN OTHER
INSTITUTIONS
CANTEENFOOD
VARIETY
MEDICAL- ACCIDIENT

NO
OF PERCENTAGE
RESPONDENTS ANALYSIS
29

29

17

17

8
40

8
40
36

INSURANCE

40% rated accident insurance as most important additional benefit required,

29% for transportation allowance, 17% for training in other institutions, 8%
for canteen food variety and 6% for improvement in township.

RATE OF REASONS FOR LEAVING THE ORGANISATION

REASONS

NO
OF
RESPONDENTS
51
6

FINANCIAL PROBLEMS
STRESS
BETTER
EMPLOYMENT
OPPURTUNITY
29
STAGNATION
14

PERCENTAGE
ANALYSIS
51
6
29
14
37

51% rated financial problem as the major reason for leaving the
organization, 6% rated stress, 29% rated better employment opportunity and
14% rated stagnation as the major reason.

POSITIVE
MOTIVATIONAL
RETENTION

RATING
STRONGLY
AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY

ACTIVITIES

WILL

INCREASE

NO
OF PERCENTAGE
RESPONDENTS
ANALYSIS
6
38
4
44
8

6
38
4
44
8

38

DISAGREE

38% agreed that positive motivational activities will increase retention, 44%
disagreed, 8% strongly disagreed, 4% rated as neutral and only 6% strongly
agreed to this point.

RATE OF WELFARE SCHEMES IN THE ORGANISATION

RATING
VERY GOOD
GOOD
BAD
VERY BAD

NO OF RESPONDENTS
6
45
23
26

PERCENTAGE ANALYSIS
6
45
23
26

39

45% rated welfare schemes as good, 23% as bad, 26% as very bad and 6%
rated as very good.

RATE OR ENVIRONMENTAL FACTORS

1) RATING OF VENTILATION, JOB SHIFTS GIVEN TO EMPLOYEES

RATING
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLYDISAGREE

NO
OF
RESPONDENTS
17
46
23
8
6

PERCENTAGE
ANALYSIS
17
46
23
8
6

40

17% strongly agreed that proper ventilation, job shifts are provided to them.
46% agreed, 8% disagreed, 6% strongly disagreed and 23% said it as
neutral.

2) RATE OF SAFETY MEASURES IN THE ORGANISATION

RATING
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY
DISAGREE

NO
RESPONDENTS
8
17
20
43
12

OF PERCENTAGE
ANALYSIS
8
17
20
43
12

41

8% of employees strongly agreed that safety is provided to them.

17% agreed, 20% said it as neutral, 43% disagreed and 12%
strongly disagreed.

RATE OF JOB SATISFACTION

1) RATE OF WORK EQUIPMENTS PROVIDED
RATING
STRONGLY
AGREE
AGREE
NEUTRAL

NO
RESPONDENTS
11
51
19

OF PERCENTAGE
ANALYSIS
11
51
19
42

DISAGREE
STRONGLY
DISAGREE

11

11

8% of employees strongly disagreed that necessary work

equipment are provided to them. 51% agreed, 19% said it as
neutral, 11% disagreed and 11% strongly agreed.

2) RATE OF OPPORTUNITY PROVIDED

NO
OF PERCENTAGE
RESPONDENTS
ANALYSIS
STRONGLY AGREE 14
14
AGREE
43
43
NEUTRAL
23
23
DISAGREE
14
14
STRONGLY
DISAGREE
6
6
RATING

43

6% of employees strongly disagreed that enough opportunities are

provided to them. 43% agreed, 23% said it as neutral, 14%
disagreed and 14% strongly agreed.

3) RATE OF EMPLOYEES OPINION CONSIDERED BY

ORGANISATION

NO
OF PERCENTAGE
RESPONDENTS
ANALYSIS
STRONGLY AGREE 11
11
AGREE
14
14
NEUTRAL
57
57
DISAGREE
12
12
RATING

44

STRONGLY
DISAGREE

6% of employees strongly disagreed that employees opinion are

considered by the organization. 14% agreed, 57% said it as
neutral, 12% disagreed and 11% strongly agreed.

RATE OF RIGHT JOBS GIVEN TO RIGHT PERSON

RATING

NO OF RESPONDENTS PERCENTAGE ANALYSIS

YES

52

52

NO

48

48

45

52% of employees said that right jobs are given to right person whereas 48%
said that right jobs are not given to right person.

FEEL AT ANY TIME TO LEAVE THE ORGANISATION

RATING

NO OF RESPONDENTS

PERCENTAGE
ANALYSIS

46

YES

34

34

NO

66

66

66% of employees think not to leave the organization whereas others think
differently.

SUMMARY

47

FINDINGS
1. The survey reveals that majority of employees working in the organization
are aged more than twenty years.
2. Majority of employees rate monetary benefits compared to their
experience in the organization was bad. From the survey I can find that this
was the serious issue of labour turn over in the organization.
3. Majority of employees demand that they want additional benefits which
will provide some relief to employees.
4. Employees agreed that good working environment will reduce attrition
rate.
5. Majority of the employees rated that the welfare activities in the
organization was good.
6.Most of the employees agreed that positive motivational activities will
increase employee retention.

48

SUGGESTIONS
1. Change the present salary structure so as to make more earning
to employees
2. Employees suggested some additional benefits such as:
Transportation allowance
Accident insurance
Training in other institutions
3. The reasons employees expressed for leaving the organization
are:
Financial problem
Stagnation
Better employment opportunity

49

ANNEXURE

QUESTIONNAIRE
I Vijaya R , is conducting a study on employee retention in HMT Machine
Tools Limited, Kalamassery. As a part of my academic purpose I am
conducting a survey. I request your
co-operation.
(Make your choice in appropriate option by making a tick mark)
1) Designation----------------------------2) Department----------------------------3) Mention your gender
a) Male
b) Female
4) Your age
a) Below 30

b) 30-40

c) 40-50

d) 50-60

5) Years of experience in BIG BAZAAR?

a) Below 5 years b) 5-10 years c) 10-15 years d) 15-20years
6) Your opinion about monetary benefits existing in BIG BAZAAR
a) Very good
b) good
c) bad
d) very bad
7) Do you agree that additional benefits other than salary will prevent you from
leaving the organization?
a) Yes
b) No
8) If agree, grade the benefits according to your preference
*(Grade as 1,2,3,4,5. eg 1- Highly preferred, 2 for the one which you think is less
preferable when compared to1.)
a) Transportation allowance
b) An improvement in township
c) Training in other institutions
50

d) Canteen- Food variety

e) Medical facilities- accident insurance
9) Grade according to your opinion the reasons that make you to leave the
Organization
*(Grade as 1,2,3,4,5. eg 1- Highly preffered , 2 for the one which you think is less
Preferable when compared to1.)
a) Financial problems
b) Stress
c) Better employment opportunity
d) Stagnation
10) Positive motivational activities such as recognitions, appreciations etc from
superiors will motivate you to continue in the organization.
a) Strongly agree b) agree c)neutral
d)disagree e) strongly disagree
11) How do you rate the welfare schemes in the organization?
a) Very good
b) good c) bad
d) very bad
12)
ENVIRONMENTA STRONGLY AGREE NEUTRAL DISAGREE STRONGLY
L FACTORS
AGREEE
DISAGREE
a) Enough space,
ventilation, job shifts
are given to you
b)
Good safety
measures are there in
the organization

13)
JOB
STRONGLY AGREE NEUTRAL DISAGREE STRONGLY
SATISFACTION AGREE
DISAGREE
a) Do you have
the materials and
equipment that

51

you need in order

to do your work
rightly?
b) At work do
you have the
opportunity to do
what you do best
everyday?
c) At work do
your
opinions
seems to be
counted?
14) Do you think higher authorities are giving right jobs to right person?
a) Yes
b) No
15) Have you ever thought of leaving the organization?
a) Yes
b) No
If yes please reveal the reason in the space provided-----------------------------------------------------------------------------------------------------------------------------------------

52